@Chris_Dickson Wine Clubs are definitely important to our business model, as well. Based on these responses, I feel that our wine club fits within most parameters people are looking for. We ship 4 times a year, and have 3 different tiers (3, 6, or 12 per shipment). Six and 12 bottle packs are fully customizable ( we also put together an offer and make it easy to edit if desired. All have flat-rate shipping, with various levels of discounts per tier (15/20/or 25% off), plus free tastings, exclusive-wines, etc. We also are very flexible with holds or skipping shipments.
Itās great to know we fit with what matters to people. It is easy to sit around and think what people want, but itās different when we ask their opinions. This thread has been very helpful in assessing how we fit in with customersā wishes.
2 Likes
I am in just three different wine clubs, two in Willamette Valley and one in Yakima Valley. All three I joined following Berserker Day purchases or other retail purchases of their wines and wanting to then hoping to get club access to their wines going forward. All three offer some level of customization being available, with club release dates in both the spring and the fall. All offer club discounts from retail pricing. And all are making wonderful wines and the people behind the wines are the very best. 
That said, prior to recently joining those three wine clubs, I had zero experience with wine clubs.
2 Likes
Something I didnāt mention, but is more about why do we STAY in clubs, vs. join in the first placeā¦ Locked in pricing or reduced pricing for club longevity. Weāve experienced this 2-3 times in different methodologies.
One club gave 20% discount on start then added 5% every year, maxing out at 50%. We were members long enough to get close to 50%, but wine quality declined, or our palates tired too much, so we dropped them.
Another, Rotie Cellars, locked us in at club pricing from 2010 when we joined. $35/bottle on their flagship wines, which now retail for $60+, plus good discounts on others. They planted a vineyard in Rocks of MF ~2012 or so, and now most of their wines come from there, so we are getting Rocks Syrah and Grenache at $35, which is pretty much not possible any other way. Weāve never not enjoyed something from Rotie, but obviously like some more than others, so we pick and choose, but our base club obligation, 3 each of Southern/Northern Red we always leave alone, and add more after a tasting. Another bonus there is that the new tasting room is at the vineyard in Milton-Freewater, Oregon, so no sales tax. 8% discount vs, Washington.
Anyway, Iām generally in favor of fewer complicated options rather than more, but these customer loyalty discounts have kept us engaged.
3 Likes
As a customer, you have to watch the wine club discounts, though.
There are a lot of wineries selling their wines direct at, above, and sometimes well above retail. So your 20% or 30% wine club discount may not mean what it sounds like.
I posted this two years ago, just to give one example:
The large mainstream Napa wineries list their nominal prices way above market, then discount them to wine club members. So I guess your customers are falling for the old shopping mall jewelry trick of marking something unnaturally high and then offering a big ādiscount.ā
Lest anyone think I am exaggerating, currently Mondavi lists their 2019 Napa Cabernet for $50. WS low is $32. A ton of retailers have it from $32-40. So they can ādiscountā that 20-30% to wine club members and the members still get a bad deal, plus Mondavi is making a huge profit margin without a distributor and retailers in the middle.
Mondavi lists the 2017 Reserve To Kalon Cabernet for $270. WS low is $121. Thatās 56% lower than the winery price. wine.com sells that wine for $130. Still less than half the winery price.
That is obviously not true of all winery wine clubs, but Iām just saying, as a customer, you might want to pressure test your wine club pricing once in awhile.
Same for mailing list pricing.
1 Like
Absolutely. It is imperative for wineries to keep a look at pricing in the market place, but sometimes it works the other way. We donāt control pricing for any individual accounts, and set FOB pricing in a similar manner. It is amazing to see the price range, and lately, I am having to scratch my head at some of the numbers. For instance, I have our 2022 Willamette Valley Chardonnay at $26 ($312 a case) DTC before discount. I sell that wine for $13 FOB, I see it listed in a portfolio we work with for $21.99, then I see it on a shelf at a shop for $32. The case pricing makes it more fun to look at. I sell it for $156, case gets sold again at $277, and then again at $384.
$156 (winery)+ $107 (distributor) + $121 (shop). I say this with an understanding that distribution and shops have to make money but numbers lately feel stretched. I buy wine at shops, through portfolios, I support these folks all the time, they are a part of team wine. It is important for customers to see numbers sometimes from say a non-elite etcā¦ winery.
4 Likes
Just speaking for myself, as a customer, I wouldnāt be put off by the occasional retail discount or clearance resulting in a price lower than what my wine club or mailing list is charging me. I know wineries donāt always control what happens once wines are out in distribution channels.
But, using my Mondavi example, if they are consistently way overcharging me for wines, and wines that arenāt too hard to find at retail, then Iām not going to be involved.
You know how people say they join clubs because they want to support the people and the business? In a similar way, that makes me feel like they arenāt treating me as a valued customer and maybe are taking advantage of me. And even if I had very high net worth and the actual dollars werenāt significant, I still wouldnāt choose to feel treated that way.
1 Like
Iām a member of exactly two wine clubs - Yeah! and Apolloās Praise. For me there are three factors:
- The winemakers are fabulous, and are always doing something new and interesting
- These wines are not available locally at retail
- The variety of wines in shipments are almost never what I would buy on my own (exposure to new varietals/techniques/blends/etc)
Generally speaking, I donāt really want to commit to large purchases; storage space is a real problem. To sway me, a club offering needs to tick all of these boxes to earn the outsized locker space.
3 Likes
For me, Iāve joined a few clubs in the past and I enjoy a couple today for the discounted pricing models. I only join if Iām visiting the winery for the first time, but I really donāt have to feel like I need a connection to the winery. The only requirements I have are 1. I have to really enjoy the wine (obvious), 2. The pricing has to be lower than average retail cost). I donāt ever feel like Iām ālocked inā. Typically, they ask you stay for a minimum number of release cycles (typically 3) for good faith. Once I reach that minimum and have built up a healthy supply for cellaring, I drop off and move on as my budget allows.
Duly noted on your third bullet point (the variety of wines not being what you would always select for yourself)! That is actually one of the things we must struggle with in putting the club shipments together; whether that annoys people, or if they enjoy the exposure to wines they might not otherwise try (on the assumption it is made and selected by the winery with good reason).
1 Like